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Not Sure How To Set Up A Weekly Money Routine? Read This Now.

Not Sure How To Set Up A Weekly Money Routine? Read This Now.

When it comes to financial matters, sometimes we wish they would just go away. Sometimes it’s a matter of keeping it all organized: between the student loan bills, the house payment and the car payments, it can seem overwhelming. Other times, it’s about stretching what little there might be to go around. Whatever the issue, it’s important to set up a routine with your money. Setting up a routine sets you up for success and keeps you from being surprised each month that the Internet bill really has to be paid, yet again.

Here are some steps you can take to optimize your weekly money spending (and receiving) routine.

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1. Look over your expenses.

Go through each of your monthly expenses and categorize them. It’s important to set up priorities and determine how you want to pay your bills. Paying different bills each week will help you do this. If your rent is due on the first of the month, schedule that payment for the last week of every month and so forth. If you expect to pay a certain amount in bills at end of each week, you’ll be more mentally prepared for it when it happens.

2. Pay bills as they arrive.

Instead of blasting out a bunch of cash every payday, pay each bill as it arrives. You can do this very easily by automating your bill payments. Paying your bills this way keeps you from ever “missing” that money. However, send yourself a reminder before it happens! If you forget and you take that money out ahead of time, you might overdraft your account. Paying your bills on time keeps your credit score up and helps you keep ahead of any late fees or extra charges you might incur otherwise.

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3. Go over the budget and look for places to save.

Once you go over your expenses, if you feel like you’re struggling to make ends meet, look for places where you can save. If you’re not sure if there are expenses you can cut, try and write down all of your expenditures for one month in a notebook. All of them. Every latte you buy at a coffee shop and every magazine at a store. Write down every single time you spend money or swipe a card. Doing this will give you a real idea of where your money goes — and where you can cut back, if need be.

4. Keep a personal money statement going.

At the beginning of the month, start a monthly money statement. You can do this in a spreadsheet on the computer or just a piece of paper that you pin to the bulletin board. Write down your goals, such as paying towards a debt, saving money for an emergency fund, saving towards the purchase of a car, that sort of thing. Each week, square up the statement, writing down for each week how much you contributed to those accounts or saved towards a certain goal. Write down next to each goal the motivation to pursue that goal. Use a quote or statement of affirmation, if it helps. Try something like, “Pay yourself first. You’re worth it. And your grand kids will thank you.”

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5. Revamp your routine as necessary.

After an initial trial period, go over your routine and revamp it. Maybe paying that one bill at the beginning of the month just didn’t work out. Maybe you forgot about another bill. Perhaps you were a little ambitious with your saving plan. Whatever it is, don’t be afraid to adjust accordingly. And don’t forget to be flexible too. Life changes, you need to be able to adapt your weekly money routine to new things. Also, don’t forget to change a bit with the seasons. If you do a lot more visiting or vacationing in the summer, adjust your plan for that as well!

Featured photo credit: University of Utah via unews.utah.edu

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Michelle Kennedy Hogan

Michelle is an explorer, editor, author of 15 books, and mom of eight.

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Published on January 8, 2021

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

Ever wondered whether your credit card debt is the reason you’re in a bad financial situation? You can’t enjoy any fun activities because a good chunk of your money goes toward debt payment. Heck, you’re even behind on some of your monthly bills.

The effects of clumsy debt management are too many to list here. This guide is going to help you discover how to pay off credit card debt fast and start chasing your financial goals.

Debt problems are the last thing anyone wants to encounter. But things can get out of hand when all the “little debts” you take accumulate in interests.

What if you knew some simple and proven ways to be debt-free quickly? Implementing them would mean better financial health for you. It becomes possible to free up cash for your “wants.” These include taking a trip or buying something you’ve always desired. All that while paying your bills on time!

Let’s not wait any longer. Here are 7 powerful tips for paying off credit card debt fast:

1. Pay More Than the Minimum Credit Card Payments

Many people only pay the monthly minimum on their credit cards. Truly, that’s the right amount for staying on good terms with your credit card company. But you need a different approach if you’re looking to achieve financial independence within a short time.[1]

Most of your payments go toward interest costs when you only pay the minimum amount. A substantial sum of your balance remains standing. As a result, it becomes more expensive to eliminate your debts.

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You don’t want to wait more than 10 years to get rid of debt while it’s possible to do it sooner. All you have to do is double that $100 minimum payment to $200 or go higher.

The good thing is that minimum credit card payments are affordable in most cases. By paying a higher amount, you reduce your interest costs, lessen your borrowing period, and boost your credit score.

2. Start With High-Interest Credit Card Debt

If you have more than one credit card debt, prioritize putting the extra money toward the ones with the highest interests. This debt pay-off strategy, known as the debt avalanche method, is essential for being debt-free quickly.[2]

First, you need to list down all the credit card debts you have in the order of their interest rates. Next, you choose the one with the highest interest and pay a significant amount toward it each month. It can be an amount twice or even thrice larger than the minimum payment.

At the same time, you make monthly minimum payments on the other debts. Their interest charges won’t be as costly as that of the first debt on your list. You only move on to the next high-interest debt after the first one is gone. Remember that your focus is on the interest rates and not the balances.

3. Revisit Your Budget

Budgeting is useful for tracking your financial moves. Once you create a budget, some tweaks along the way can make it work for you better. One situation that requires you to revisit your budget is when you’re struggling with debts. It might hurt a bit to slash some expenses. But you also don’t want to miss out on achieving financial freedom in the long run.

You can reduce some variable expenses to free up more cash for credit card debt payments. They’re the ones that change from time to time. Some examples are groceries, fuel, and clothing.

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Other opportunities for cutting down your spending lie in non-essential expenses. Instead of dining out all the time, you can cook at home more to save money. You can also share some subscriptions with friends and pay a fraction of the cost.

If you’re determined enough, you can eliminate all your unnecessary expenses and focus on paying off your credit card debt first.

4. Avoid Using Your Credit Cards

Do you want to know how to pay off credit card debt with a low income? One simple way is to stop using them. Having your credit cards everywhere you go means that you’ll be more tempted to buy unnecessary stuff. In this case, you spend money that you don’t really own and get deeper into debt.

The quickest fix to stop the debt build-up is spending with cash. You’ll be more aware of everything you can afford at any particular time. If you decide to keep one or two cards to ease the transition, always make wise choices. For instance, only use them when experiencing financial difficulties.

It’s best to categorize your fun activities under “discretionary spending” in your budget. This way, you won’t need more debt to kill your boredom. By halting your credit debt from accumulating, it’s easy to pay down what you already owe and be happy with the progress.

5. Start a Side Hustle to Boost Your Income

You’re probably turning away a lot of money by not monetizing your skills. Everyone has something that they’re good at doing. And you can use that to generate extra income for attacking your credit card debt.

If you look around your neighborhood, you can find several side hustle opportunities. It can be pet sitting, tutoring, or lawn mowing. You can start an online business by offering services such as digital marketing, content creation, and web development. Such skills go in high demand on freelance sites and job boards.

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Finding clients on social media is also a good strategy to utilize your skills and make more money. Facebook groups, Quora Spaces, and subreddits are some places to look for side jobs. You only have to join a niche-specific platform, share your services, and respond to any opportunities.

It’s possible to learn a skill, practice it, and earn from it. Use the free resources online or purchase some e-courses to get started.

6. Sell Your Used Items for Extra Cash

Starting a side hustle isn’t the only way to generate extra money. You can turn unwanted items into cash for paying off credit card debt. Whether it’s an old TV, book, or furniture, there is always someone itching to buy your used stuff.

A garage sale, as much as it’s old-fashioned, is perfect for getting your neighbors and passers-by to buy from you. You keep all the money because there are no business permits or taxes involved. While you may not make much cash, it’s better than leaving your stuff to go defunct in your storage.

Other than that, you can sell your used stuff on online marketplaces. Facebook groups are great places to start if you want quick approvals and hence sales. You only have to ensure that your listing follows Facebook’s commerce policies.

When selling any pre-owned items online, ensure they’re in good shape to avoid problems with your buyers.

7. Know When to Seek Help With Your Debt

Asking for help with your credit card debt can be challenging to do. But letting it drown you is a road you don’t want to take. While you may feel embarrassed at first, it’s the best way to get back on track when you run out of options.

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There are tons of non-profit credit counseling organizations that can offer you free guidance on how to escape the debt trap. An example is The National Foundation for Credit Counseling. They simply review your finances and help you determine the source of your financial problems. After that, they match you with an actionable debt management solution.[3]

In extreme cases, the debt solution can be:

  • Debt relief – where your debt is partially or wholly forgiven
  • Debt consolidation – taking out one loan to repay others
  • Debt settlement – the creditor forgives a significant portion of your debt
  • Bankruptcy – legal process for seeking relief from some or all your debts

It’s necessary to carefully weigh your options before deciding on the way to go. Find out how it might affect your credit score and any other risks.

Wrapping It Up

Debt is a major setback when you’re trying to prosper in life. Paying off credit card debt is essential if you want to reach your financial goals. That means having more free income, a good credit card score, and even a chance to retire early. You become more productive each day because of the peace in your mind.

So, you now have some tips on how to pay off credit fast. Go ahead and get rid of that good life progress killer!

More Tips on How to Pay Off Debt

Featured photo credit: rupixen.com via unsplash.com

Reference

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